Norwegian Krone Falls as Gains After Rate Rise Prove Brief
Dow Jones
Sep 25
0914 GMT - The Norwegian krone falls to a three-and-a-half week low against the euro, reversing gains after the Norges Bank raised interest rates by 25 basis points to 4.5% Thursday. The Norges Bank simply brought forward an anticipated rate rise and rates are now expected to remain unchanged until the end of the year, Commerzbank's Michael Pfister says in a note. "For the krone to benefit more significantly, Norges Bank will likely need to signal an even tighter monetary policy in the coming months." A fall in oil prices is also weighing on the krone as Norway is a major energy exporter. The euro rises to as high as 10.8550 krone, having reached a 10-day low of 10.7451 Thursday, according to LSEG.
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